Phased implementation from 2027 to 2029.

Requires large companies to integrate human rights and environmental due diligence (HREDD) into their policies, and identify, address, and remediate adverse impacts of their business practices on people and the environment. The directive includes provisions on living income, living wage, purchasing practices and meaningful engagement, and discourages disengagement from suppliers in a cut-and-run manner when issues are identified.

A landmark piece of legislation that recognises sustainable livelihoods as a human right and has the potential to change trade.

Fair implementation is key – farmers and workers cannot be burdened with achieving compliance alone. They need collaboration, training, and financial support.

Companies are responsible for fulfilling their due diligence obligations, but we’re here to assist: Fairtrade Standards are being aligned with the CSDDD, and we promote fair due diligence with a special emphasis on establishing dialogue, collaboration and fair cost sharing between trade partners. We offer training and advice to all certified producer organisations, support business in their risk analysis, have compliance and remediation monitored through FLOCERT audits, and can partner on targeted programmes.

Coming into effect 2025, phased implementation.

Companies are obliged to provide public sustainability and financial reports every year to detail human rights and environmental due diligence measures. These can span across governance and strategy, policies, actions and targets on material impacts, as well as risks and opportunities.

Mandatory sustainability reporting marks an important step towards more transparent supply chains and stronger due diligence systems.

For CSRD reporting to be impactful, it must not be a stand-alone process but part of a company’s broader efforts towards human rights and environmental due diligence. Sustainability reporting should not be a cherry-picking exercise whereby companies report on indicators that serve them the most.

Fairtrade services and standards already support certified producers and businesses to strengthen their due diligence and foster collaboration in supply chains. We have strong expertise to guide companies on how they can comply with reporting requirements when sourcing Fairtrade. A CSRD reporting tool is currently being developed.

Coming into effect 2025, phased implementation.

Companies are obliged to provide public sustainability and financial reports every year to detail human rights and environmental due diligence measures. These can span across governance and strategy, policies, actions and targets on material impacts, as well as risks and opportunities.

Mandatory sustainability reporting marks an important step towards more transparent supply chains and stronger due diligence systems.

For CSRD reporting to be impactful, it must not be a stand-alone process but part of a company’s broader efforts towards human rights and environmental due diligence. Sustainability reporting should not be a cherry-picking exercise whereby companies report on indicators that serve them the most.

Fairtrade services and standards already support certified producers and businesses to strengthen their due diligence and foster collaboration in supply chains. We have strong expertise to guide companies on how they can comply with reporting requirements when sourcing Fairtrade. A CSRD reporting tool is currently being developed.

Coming into effect January 2025.

Aims to strengthen the integrity of organic production by applying the same rules to all organic certified operators within the EU and worldwide.

Credibility and integrity in agricultural production are at the heart of Fairtrade’s work and we welcome efforts to strengthen it. If the new regulation expands the EU organic market, it could present a chance for Fairtrade organic farmers to generate more sales.

Stricter production and audit rules, and the lack of clarity on the requirements, will result in higher costs for producers and might cause a loss of organic certification, reduce sales, and cause the overall EU organic market to shrink. Many Fairtrade farmer organisations growing organic cocoa, coffee, and bananas need more time to become fully compliant. Several supply chains are at risk of being disrupted.

We have intensely advocated for extending the transition period to mitigate potential disruptions, but unfortunately have not been heard.

All parts of the Fairtrade system are currently working make sure that producers, traders, and companies are aware of the implications and can access guidance. Fairtrade International and the certifier FLOCERT inform producers, while producer networks provide training and workshops, and national Fairtrade organisations discuss challenges and possible mitigation strategies with commercial partners.